Business groups attack retroactivity

Business groups and large corporations focused their opposition on the new tax consolidation rules, which allow large groups to offset taxable income in one legal entity with taxable losses in another. The bill passed by the Chamber—adopting the government’s proposal—will shorten the time limits for realizing the offsets and paying any deferred taxes, in what many interpret as a retroactive change in tax law. The Ministry of Finance estimated that the measures would raise Ps. 16 billion in revenue in 2010. Both the PRI and the PAN in the Senate have pledged to review the measure, and are negotiating with the Ministry of Finance. (Excelsior 10/26)